Monthly Archives: December 2014

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TRAI gives recommendations on reserve price of spectrum in 2100 MHz band

Wednesday, 31 December 2014

The Telecom Regulatory Authority of India (TRAI) has given its recommendations on the reserve price of spectrum in the 2100 MHz band to the Department of Telecommunications (DoT).

TRAI has recommended the base price of Rs 27.20 billion per MHz of pan-Indian spectrum in the 2100 MHz band. Meanwhile, the telecom regulator has also reiterated its earlier suggestion that spectrum in the 2100 MHz band should be auctioned along with spectrum in the 800 MHz, 900 MHz and 1800MHz bands in February 2015.

TRAI has also recommended that the 15 MHz of spectrum in the 2100 MHz spectrum being vacated by Ministry of Defence, in lieu of spectrum in the 1900 MHz spectrum, should be auctioned as the in-principle agreement has been reached with the ministry. Further, the actual date of spectrum assignment, which does not occur immediately, may be given in the notice inviting applications (NIA).

Further, TRAI has recommended that no bidder be permitted to bid for more than two blocks in a licence service area (LSA) if 3-4 blocks are available in that LSA. Further, the telecom regulator has suggested that telecom operators should be permitted to realign their spectrum holding amongst themselves through mutual agreement.

Earlier in November 2014, DoT had requested TRAI to expedite the process for its recommendations on the reserve price of spectrum in the 2100 MHz band. Thereafter, TRAI issued the respective consultation paper on December 2, 2014, and held discussions with the stakeholders on December 22, 2014.

TRAI gives recommendations on reserve price of spectrum in 2100 MHz band

Wednesday, 31 December 2014

The Telecom Regulatory Authority of India (TRAI) has given its recommendations on the reserve price of spectrum in the 2100 MHz band to the Department of Telecommunications (DoT).

TRAI has recommended the base price of Rs 27.20 billion per MHz of pan-Indian spectrum in the 2100 MHz band. Meanwhile, the telecom regulator has also reiterated its earlier suggestion that spectrum in the 2100 MHz band should be auctioned along with spectrum in the 800 MHz, 900 MHz and 1800MHz bands in February 2015.

TRAI has also recommended that the 15 MHz of spectrum in the 2100 MHz spectrum being vacated by Ministry of Defence, in lieu of spectrum in the 1900 MHz spectrum, should be auctioned as the in-principle agreement has been reached with the ministry. Further, the actual date of spectrum assignment, which does not occur immediately, may be given in the notice inviting applications (NIA).

Further, TRAI has recommended that no bidder be permitted to bid for more than two blocks in a licence service area (LSA) if 3-4 blocks are available in that LSA. Further, the telecom regulator has suggested that telecom operators should be permitted to realign their spectrum holding amongst themselves through mutual agreement.

Earlier in November 2014, DoT had requested TRAI to expedite the process for its recommendations on the reserve price of spectrum in the 2100 MHz band. Thereafter, TRAI issued the respective consultation paper on December 2, 2014, and held discussions with the stakeholders on December 22, 2014.

DoT to seek cabinetâ€™s approval on spectrum swap agreement with defence in January 2015

Wednesday, 31 December 2014

The Department of Telecommunications (DoT) is likely to seek approval of the Union Cabinet on the issue of spectrum swap with the Ministry of Defence in January 2015. Â This comes in accordance with DoTâ€™s reported plans of auctioning 20 MHz of spectrum in 2100 MHz band in February 2015.

The telecom department is of the view that it is not necessary to swap 3G spectrum by February; the actual swapping can happen by July 2015. However, DoT is trying to ensure that auctions in the 2100 MHz band is held along with 800 MHz, 900 MHz and 1800 MHz band in February 2015, as recommended by the Telecom Regulatory Authority of India (TRAI).

The Ministry of Communications and IT has already reached an in-principle agreement with the Ministry of Defence for swapping 15 MHz of spectrum in the 2100 MHz band that is currently held by the defence forces in exchange for spectrum in the 1900 MHz band, which is currently held by DoT.

DoT to seek cabinetâ€™s approval on spectrum swap agreement with defence in January 2015

Wednesday, 31 December 2014

The Department of Telecommunications (DoT) is likely to seek approval of the Union Cabinet on the issue of spectrum swap with the Ministry of Defence in January 2015. Â This comes in accordance with DoTâ€™s reported plans of auctioning 20 MHz of spectrum in 2100 MHz band in February 2015.

The telecom department is of the view that it is not necessary to swap 3G spectrum by February; the actual swapping can happen by July 2015. However, DoT is trying to ensure that auctions in the 2100 MHz band is held along with 800 MHz, 900 MHz and 1800 MHz band in February 2015, as recommended by the Telecom Regulatory Authority of India (TRAI).

The Ministry of Communications and IT has already reached an in-principle agreement with the Ministry of Defence for swapping 15 MHz of spectrum in the 2100 MHz band that is currently held by the defence forces in exchange for spectrum in the 1900 MHz band, which is currently held by DoT.

The transfer pricing department has approached the Central Board of Direct Taxes (CBDT) seeking clarity over the legal recourse in the Vodafone transfer pricing case. The transfer pricing department is yet to make adjustments on share issuances by Vodafone India services to Vodafone Teleservices Mauritius for assessment years, 2011 and 2012.

The move comes with the view to provide clarity on the transfer pricing case as the Bombay High Court's ruling, which was in favour of Vodafone, will be binding on all subsequent transfer pricing orders if the tax department chooses not appeal. It has been reported that the transfer pricing officer can raise additional tax demands on Vodafone India before January 31, 2015.

In October 2014, the Bombay High Court had ruled that Vodafone was not liable to pay tax of Rs 32 billion in a transfer pricing case dating back to 2009-10. In this case, the tax authorities had alleged that Vodafone India, a group entity, had under-priced shares in a rights issue to its parent company, Vodafone Teleservices Mauritius.